SCHATZ TECHS: (H6) Impulsive Bear Wave Extends
- RES 4: 106.975 High Dec 1
- RES 3: 106.945 High Dec 3 and a key short-term resistance
- RES 2: 106.885 Low Dec 2
- RES 1: 106.835 High Dec 8
- PRICE: 106.670 @ 14:24 GMT Dec 10
- SUP 1: 106.630 Intraday low
- SUP 2: 106.621 2.236 proj of the Nov 26 - Dec 2 - 3 minor price swing
- SUP 3: 106.600 2.382 proj of the Nov 26 - Dec 2 - 3 minor price swing
- SUP 4: 106.583 2.500 proj of the Nov 26 - Dec 2 - 3 minor price swing
A sharp sell-off in Schatz futures last week and an extension this week, confirms a continuation of a bear cycle that started mid-October. Note that on the continuation chart, MA studies are in a bear-mode position, highlighting a dominant downtrend. Sights are on 106.621 next, a Fibonacci projection. Key short-term resistance has been defined at 106.945, the Dec 3 high. A corrective bounce would allow an oversold trend condition to unwind.
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EQUITIES: Wall St. Set For Higher Open After Progress Towards Ending Shutdown
E-minis remained underpinned after movement towards the reopening of the government over the weekend, pointing to comfortably higher cash opens.
- Such a move would extend on Friday’s late recovery in cash indices.
- The 3 major contracts are through Friday’s highs but shy of Thursday tops.
- Our technical analyst notes that the trend condition in S&P 500 e-minis remains bullish and the pullback since the Oct 30 high appears corrective. Friday's activity highlights a potential reversal signal - a bullish doji candle. A continuation higher would signal the end of a correction and open 6,953.75, the Oct 30 high and bull trigger.
- S&P 500 e-minis: +0.98%
- NASDAQ 100 e-minis: +1.54%
- DJIA e-minis: +0.44%
STIR FUTURES: Earlier Rolls, Block Sale
Appr -32,000 SFRZ5/SFRH6 spreads sold earlier: -0.200 after -10,000 SFRZ5 Block sale, 96.24 at 0836ET.
BONDS: Bid In Tsys Lends Wider Support
Spillover support for Bunds & gilts from the recent bid in Tsys, which seems flow-centric given the lack of meaningful macro headlines.
- Bund futures to fresh session highs, but 10-15 ticks off Friday’s top, while gilt futures fail to retest London morning highs.
- German & UK yields little changed across the curve, still outperforming U.S. peers.
